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Global oil consumption in 2020 recorded 9% slump, says EIA

The consumption is expected to surge 6 percent to 5.6 million bpd this year compared to 2020

The global petroleum consumption including other liquid fuels slumped 9 percent to 92.2 million barrels per day (bpd) last year due to the pandemic. The reports are produced by U.S. Energy Information Administration (EIA).

The reports indicate that the global oil sector is expected to rebound this year with a surge in oil consumption. The consumption is expected to surge 6 percent to 5.6 million bpd this year compared to 2020 and will surge by an additional 3.3 million bpd in 2022. According to the agency’s forecast, the US will contribute with a 1.4 million bpd consumption towards the growth this year.

The forecasts by EIA are still below the pre-pandemic level at 97.8 million bpd despite the expected global oil consumption surge this year. Furthermore, OPEC also expects oil demand to surge this year from the downturn in 2020. It is reported that the global oil consumption will still remain below the pre-crisis levels of 2019 if the consumption stands at 95.9 million bpd this year.

OPEC, told the media,” Oil demand is not projected to fully recover from the 2020 slump.” It has forecast that the global 2020 oil demand has fallen by 9.8 million bpd to an average of 90 million bpd.

According to IEA, its oil demand growth this year is forecasted at 300,000 bpd to 5.5 million bpd. The agency expects an average of 96.6 million bpd towards oil demand in 2021. The pandemic has walloped the oil segment like any other sector.

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